Paying for a Master's

[beyourownlight]

I notice a lot of people have posted about this topic, both this year and in the past, but it's all very specific about their programs or someone is talking about PhDs, which is really a differently entity entirely. Of course, this issue is one I am dealing with, but I think it's also a good topic to explore more hypothetically as well, so I've amended the information to make it more generic, and perhaps more helpful for the GradCafe community at large.

So, here's the question:

Is it worth paying for a Master's degree?

The (hypothetical) situation:

• You have been accepted to a Master's program at your top pick.
  
• Funding is more rare for Master's in most fields(this one included), and no offer has been (or is expected to be) made.
  
• The school is high-ranked, there are several professors in the department doing relevant and interesting research, and the courses are also relevant and interesting.
  
• The cost to attend until degree completion would be around $50,000 USD, and would be born almost entirely by loans, private and government. There is already undergraduate debt, but less than $15,000.
  
• Other schools have also offered acceptance, but with similar funding issues.
  

Is it worth paying for this degree?

Would you consider the situation differently if there were a full funding offer from another school, but with lower-ranking, only 1 or maybe 2 professors doing relevant work, less-relevant coursework, and possibly, less opportunities?

Is paying for a good Master's degree and getting the name recognition, networking potential, and opportunity potential worth the amount of debt incurred?

What do you think?

[verdalantreas]

Depends. Could be worth it, but 50k is a lot of money for most of us.

Though getting a masters is a good idea in general, so if all offers are similar, then go with the best if you can scrape the money together and don't have to start repayments while in your PhD.

[michigan girl]

I want to add that the cost of attendance is about $60,000 in high cost-of-living areas like California and NYC. $50K sounds about right for college town/Southern/Midwest locations. Much less if you're an in-state student at a public university.There are additional factors: Is the master's degree a one-year or two-year program? Are there graduate assistantships (TA/RA/GA) included with your financial aid package? I believe it's never worth it if you receive absolutely no kind of financial assistance from the program. If the program really desires you, they'll offer you some funding.

One of my top choices is a one-year master's program that includes a scholarship, graduate assistantship, professors who do amazing relevant research, and outstanding job placement/alumni network. In my case, I think it's worth the debt. I would never pay full cost simply because I can't afford it. Get a job to save money, improve your application, and re-apply in the next round.

I'm also not sure why you'll need to incur private loans when Direct Grad PLUS loans exist (you can borrow up to the cost of attendance, and they're federal loans).

[We regret to inform you]

I took out about $60k for my first masters. Honestly, it was a pretty big mistake, and the reason i say that is because by the time i had finished the degree I realized it wasn't the field for me. So now i'm going to be paying for this mistake financially for the next 20 years.

HOWEVER, earning this degree did allow me to do some travelling and it probably helped me get accepted to my current graduate program(s). Also, it will provide me with a backup plan if my current plans don't pan out. So it wasn't entirely a waste.

Honestly though, i would only recommend taking on the debt if you are absolutely, positively sure this is a field you love and will stay with through thick and thin.

Edited March 3, 2012 by We regret to inform you

[kaguyahime]

One thing worth considering is that not getting a funding offer for the first year does not equal no funding whatsoever.

I was admitted to an MA program in a prestigious school with no funding; however, after taking out loans for the first year, I was fully funded for the following years. Not sure if this is an unusual scenario, but it worked out well for me.

[rkg2012]

The (hypothetical) situation:

• You have been accepted to a Master's program at your top pick.
  
• Funding is more rare for Master's in most fields(this one included), and no offer has been (or is expected to be) made.
  
• The school is high-ranked, there are several professors in the department doing relevant and interesting research, and the courses are also relevant and interesting.
  
• The cost to attend until degree completion would be around $50,000 USD, and would be born almost entirely by loans, private and government. There is already undergraduate debt, but less than $15,000.
  
• Other schools have also offered acceptance, but with similar funding issues.
  

This was nearly my situation last year, except I had an unfunded PhD offer (obviously out), a partially funded MA offer (tempting), and a name brand unfunded MA offer. I ended up choosing this unfunded UK school because the program was pretty much exactly what I wanted and it is only 1 year. For me, this was the only place I could do a degree like this, but it was certainly not an easy decision to become 50k more in debt. I had some (not much) in loans already and I am far from wealthy. In the end, this program hasn't totally lived up to my expectations, but I don't regret the choice. I think the important thing is to fully consider what you will get out of it and how it will get you where you want to be in life. I do think that it helped my PhD applications, especially since I have an awesome adviser who wrote glowing recommendations (or I assume so, since I have several offers and I know he thinks highly of me).

[rmgerdes]

I think a factor in your decision should be the job prospects.

For example, if were like me, an English major, you would be insane to pay that much for a Master's degree. But if you could expect to make enough money with your degree for it to be worth it....

Edited March 4, 2012 by rmgerdes

[kwadwo]

This discussion is very interesting to me. I applied to a number of schools and so far I have had 3 admits but all without funding. I still am waiting on 3 more schools but they are more competitive schools.

I really want to pursue this degree but I'm loooking at a debt of about 60k if I choose to attend. I also keep asking myself if the fact that they didnt offer any funding at all is a sign that they dont really want me on the program especially since this is an engineering degree.

[Juffo-Wup]

I'm in a somewhat similar situation. I applied to the PhD program at my first-choice school, they rejected me but offered me admission to the MA program instead, which is unfunded. It would be about 20k to complete the program, which I suppose will mostly come from loans. This is in the humanities, so it's not like it's a professional degree that's going to make me a lot of money in the private sector, but on the other hand, it's in the field I really want to pursue, and I have no debt whatsoever from my undergraduate degree. I'd like to take the MA, and then try to continue to pursue a PhD at the same institution, but I'm not sure if its a financially sound decision. Any advice?

[stell4]

I know for me it is, though, I am likely in much different situation. To start, I have a pretty low undergrad GPA. Since graduating I've become a high school teacher. For my planned degree, there are 1.5 to 2 jobs per graduate expected for 2012 (and demand is expected to rise), in addition the average starting salary is more than TWICE what I make as a 4th year teacher. In fact, the low end of starting salaries are more than I would make with 15 years of teaching experience. I figure once I am employed I can always pretend I am still making nothing,which I am pretty use to, and pay off loans quick (fingers crossed)

[peter_parker]

I'm still weighing the financial factors as well.

But I think I can swing a 12 month master's at an in-state tution flagship and spend $13,500 in tuition all said and done.

Cost of living in the cornfield - if I live like a pauper - will probably be $15,000 for the 12 months, if I consider health insurance, textbooks, extras, etc, although perhaps I'm being too conservative.

I have no funding, of course. But I'm trying to save up $11,000 before I begin in the fall (currently working full time and living at home) and might find a way to work part time while at at school (maybe adding $5,000 for 12 months optimistically).

Then the debt doesn't seem as bad, but still --- I dislike any debt.

[juilletmercredi]

Like everyone else said, it would depend on the field, job prospects in said field, and how far apart the two MA programs. I wouldn't turn down a fully funded offer at #10 to go to #4, or even a fully funded offer at #20 to go to #2. But if the school is like #65 and you have the chance to go to #1? Well, it would also depend on how much prestige and relative rank means in your field. In some fields - like if you wanted to be a K-12 teacher or an accountant - it probably wouldn't matter, whereas in others it might.

In general, though, I am a big fan of follow the money.

Just FYI, $65,000 in 10 years at 6.8% interest is about $748 a month. Your loan interest will likely be a little higher than that even if you get Direct PLUS loans, since those are capped at 7.9% interest. If you get a 20-year repayment plan instead, that's only $496 a month, but then you are paying almost as much in interest as the original loan.

[CU2011]

This is going to be an obvious answer I feel, but I've worked the last year in a law firm in commercial real estate while living pretty prudently. So I assume that for my Master's that it is always better to shell out the savings I have than even consider taking out a loan. Yes?

[aldousarendt]

This is going to be an obvious answer I feel, but I've worked the last year in a law firm in commercial real estate while living pretty prudently. So I assume that for my Master's that it is always better to shell out the savings I have than even consider taking out a loan. Yes?

Uh, yes!!

[michigan girl]

I took out about $60k for my first masters. Honestly, it was a pretty big mistake, and the reason i say that is because by the time i had finished the degree I realized it wasn't the field for me. So now i'm going to be paying for this mistake financially for the next 20 years.

HOWEVER, earning this degree did allow me to do some travelling and it probably helped me get accepted to my current graduate program(s). Also, it will provide me with a backup plan if my current plans don't pan out. So it wasn't entirely a waste.

Honestly though, i would only recommend taking on the debt if you are absolutely, positively sure this is a field you love and will stay with through thick and thin.

Ditto. I am enrolling in another master's program in the fall that better aligns with my professional goals (the debt that I accumulated was all federal loans). Plus, my first master's degree experience helped me land an awesome graduate assistantship in the second master's program. Sometimes, we have to go through a series of steps (programs, locations, networks) to find our niche(s).

[michigan girl]

This is going to be an obvious answer I feel, but I've worked the last year in a law firm in commercial real estate while living pretty prudently. So I assume that for my Master's that it is always better to shell out the savings I have than even consider taking out a loan. Yes?

There's nothing wrong with using federal loans to fund your education and living expenses (the government provides a variety of income-based repayment plans and debt consolidation options). If you are planning to work in the nonprofit and public sectors, you may have your loans waived after ten years of public service. Stay away from private loan lenders because they are less flexible (higher interest rates, no deferment options).

[sociologo]

This is going to be an obvious answer I feel, but I've worked the last year in a law firm in commercial real estate while living pretty prudently. So I assume that for my Master's that it is always better to shell out the savings I have than even consider taking out a loan. Yes?

Agree with michigan girl. You might need your savings for when you graduate and are looking for a job, so don't use all of them. I think it's fine to use the federal loans offered. They usually have low interest rates, and some of them don't collect interest while you're in school. I wouldn't have been able to live during my Masters without them, and I'm a fully funded student. The area I'm in is really expensive, so I mostly used them to help with my rent. Definitely stay away from private loans. They are awful to work with.

[michigan girl]

I want to add another tip: During graduate school, if you have a part-time job, set aside a portion of your earnings every pay period in a savings account. When I graduated, I had amassed enough money to help pay for my finances when I was unemployed during the job search. As arandall said, don't use your savings to pay for graduate school unless you're independently wealthy.

[Gneiss1]

I think a factor in your decision should be the job prospects.

For example, if were like me, an English major, you would be insane to pay that much for a Master's degree. But if you could expect to make enough money with your degree for it to be worth it....

Exactly what they said. I can't say I know all that much about your degree, but in my field a bachelor's degree will land you a job (if you can find someone to hire you) paying around $40,000 for someone fresh out of college with no experience in my area. A master's degree with no work experience has a large job pool and starts at around $90,000 with a lot of opportunity for advancement. So for me that would definitely be worth it. My fiance on the other hand would only see about a $10-$15,000 pay increase with a masters degree in his field so for him it would not be worth it.

Also you could look into working at least part time to offset some of your expenses as someone else mentioned.

[Athenrein]

I'm in the same boat, except that the only offer I got is an unfunded MA. I'm looking at about $60k including living expenses. On the one hand, it's really what I want to do. On the other, it's a LOT of money.

I'm leaning towards accepting it, living farther away from campus to save some money on rent, and finding a job to help out with living expenses. If I can cover all my living expenses that'd cut down my loans to ~$35k, which seems a little more reasonable.

[sociologo]

If you are seriously considering it, contact whatever office handles on-campus employment to see if there are any Graduate Assistantship positions available. The university I attend has a lot of GA positions outside of TA/RA positions, either with student government, campus recreation, coordinating student orgs., etc. They frequently include some sort of tuition waiver. Definitely worth looking into..